Shares jump after ‘bullet is dodged’ in Ofcom ruling

The telecoms watchdog ordered BT to sever Openreach into a legally separate entity but not to break up the company

PRESS ASSOCIATION

Simon English, Deputy Business Editor

Wednesday July 27 2016, 12.01am, The Times

BT shares rose yesterday as the City decided that a regulatory shake-up ordered by the telecoms watchdog was far less severe than had been feared.

A move by Ofcom to force the telecoms giant to separate its broadband internet provider, Openreach, into a legally separate entity fell well short of the complete break-up of the company that some shareholders had expected.

BT shares were up nearly 5 per cent in early trading. Profit taking by traders later on saw the stock close up 12¼p, more than 3 per cent, at 399¾p.

At that price the company is valued at just shy of £40 billion, making it one of the biggest businesses in Britain.